TA: Ethereum Sets New ATH, Here’s Why The Bulls Could Aim $2,500

Ethereum is gaining momentum above $2,300 against the US Dollar. ETH price is showing positive signs and it is likely to continue higher towards the $2,400 and $2,500 levels.

• Ethereum is gaining pace above the $2,200 and $2,250 resistance levels.
• The price is now trading well above $2,250 and the 100 hourly simple moving average.
• There was a break above a key contracting triangle with resistance near $2,300 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to continue higher towards the $2,400 and $2,420 levels in the near term.

Ethereum Price Is Gaining Pace

Ethereum started a strong increase after it broke the $2,200 resistance zone. ETH broke many hurdles near $2,220 and $2,250 to move into a positive zone.

There was a clear break above the $2,300 resistance levels. Moreover, there was a break above a key contracting triangle with resistance near $2,300 on the hourly chart of ETH/USD. It is now trading well above the 1.236 Fib extension level of the downward move from the $2,200 swing high to $2,102 low.

Ether is now trading well above $2,250 and the 100 hourly simple moving average. It is showing a lot of positive signs above the $2,300 level, and it traded to a new all-time high, similar to bitcoin.

Source: ETHUSD on TradingView.com

It seems like the bulls are aiming a test of the $2,400 level. An intermediate resistance could be $2,355. It is near the 2.618 Fib extension level of the downward move from the $2,200 swing high to $2,102 low. Any more gains could open the doors for a push towards the $2,500 level in the near term.

Dips Limited in ETH?

If Ethereum fails to clear the $2,350 resistance, it could correct lower. The first major support is now forming near the $2,300 level or the broken triangle zone.

The main support is now near the $2,250 level. If ether fails to stay above the $2,250 support zone, it could continue to move down towards the $2,200 support zone. Any more losses might call for a test of the $2,180 support area and the 100 hourly simple moving average.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 60 level.

Major Support Level – $2,300

Major Resistance Level – $2,400